Fillable Form 6088 - Distributable Benefits From Employee Pension Benefit Plans (Page 2 of 2) in pdf

Form 6088 (Rev. 3-2008)

Page

Column (a). First list any participant who at any time during the 5-year

General Instructions

period prior to the date of plan termination or proposed plan termination

owned directly or indirectly 5% or more of the voting stock or 5% or

Section references are to the Internal Revenue Code unless otherwise

more of the business. Next list the remaining participants in order of

noted.

current compensation (see Definitions above and the instructions for

Purpose of form. The Internal Revenue Service (IRS) uses the

column (e)) starting with the highest-paid participant followed by the next

information on Form 6088 to analyze an application for a determination

highest-paid, and so on.

letter on the qualification of the plan upon termination.

Column (b). Check column (b) to indicate that a participant is a highly

Who must file. A plan sponsor or administrator of a defined benefit or an

compensated employee under section 414(q). Enter “NA” if the

underfunded defined contribution plan that files an application for an IRS

participant is not a highly compensated employee.

determination letter regarding a plan termination must attach Form(s)

Column (c). (Defined benefit plans only.) List years of participation prior

6088 to Form 5310, Application for Determination for Terminating Plans

to the earliest of plan termination, retirement, or separation from

or Form 5300, Application for Determination for Employee Benefit Plan,

employment. If the accrued benefit described in column (f) is based on

whichever applies.

years of credited service that is different than years of participation,

A plan sponsor or administrator of a collectively bargained

attach a separate schedule to add this information for each participant.

underfunded defined contribution plan must file Form 6088 only if the

Column (d). (Defined benefit plans only.) List the participant’s age as of

plan benefits employees who are not collectively bargained employees or

plan termination.

more than 2% of the employees covered by the plan are professional

employees. See Regulations section 1.410(b)-6(d) and 1.410(b)-9 for

Column (e). For defined contribution plans. Enter the participant’s

definitions of collectively bargained employee and professional employee.

compensation for the current 12-month period. The current 12-month

If this form is required for a collectively bargained underfunded plan that

period can be the last calendar or plan year ending on or before plan

benefits noncollectively bargained employees, file a separate Form 6088

termination. For participants who are no longer employed as of the date

for each employer with noncollectively bargained employees benefiting

of plan termination, compensation is the compensation received for the

under the plan as if such noncollectively bargained employees were

applicable period immediately before the earlier of retirement or

benefiting under a separate plan. Do not file a Form 6088 for the portion

separation from employment. See Regulations section 1.415(c)-2(e)(3) for

of an underfunded defined contribution plan benefiting collectively

additional rules.

bargained employees. If more than 2% of the employees covered by a

For defined benefit plans. Enter the participant’s average compensation

collectively bargained plan are professional employees, file as if all

for the high 3 years. Average compensation for the “high 3 years” means

employees covered by the plan were noncollectively bargained

the participant’s average compensation determined on an annual basis

employees.

for the period of consecutive calendar years (but not more than 3) during

which the participant had the greatest aggregate compensation from the

File a separate Form 6088 for each employer participating in a multiple

employer (or earned income if the participant is self-employed or an

employer defined benefit or underfunded defined contribution plan

owner-employee). For participants no longer employed as of the

described in section 413(c) (all employers in each affiliated service group,

proposed termination date, use compensation and years of participation

controlled group of corporations, or group of trades or businesses under

prior to the earliest of the proposed date of plan termination, retirement,

common control are considered one employer).

or separation from employment. If the accrued benefit described in

Public inspection. Section 6104(a)(1)(B) provides generally that

column (f) is based on compensation other than the “high 3 years,”

applications, filed for the qualification of a pension, profit-sharing, or

please attach a separate schedule to report those amounts for each

stock bonus plan, will be open to public inspection. However, section

participant.

6104(a)(1)(C) provides that information concerning the compensation of

Column (f). (Defined benefit plans only.) List the accrued benefit, as of

any participant will not be open to public inspection. Therefore, Form

the date of plan termination, of each participant (in the normal form

6088 will not be made available to the public, plan participants, or other

payable at normal retirement age under the plan) excluding any benefits

employees of the employer who established the plan.

attributable to voluntary employee contributions (including rollovers). In

Definitions

lieu of providing the information in the preceding sentence for

Participant. For purposes of this form, participant means any individual who

participants in pay status, the accrued benefit in the form being paid may

satisfied the plan participation requirements and is entitled to receive plan

be entered with an asterick and the form of the payout described on an

benefits upon termination of the plan. This includes employees with accrued

attachment. If the accrued benefit is increased or decreased because of

nonvested benefits and individuals who are former employees at the time of

top-heaviness, section 415 limitations or offsets, report this in an

plan termination who are entitled to future benefits under the plan.

attachment that includes a detailed calculation of the increased or

Compensation. Compensation, for purposes of completing columns (a)

decreased benefit. However, do not adjust for an election of a majority

and (e), means section 415 compensation as defined in Regulations

owner to forego receipt of a distribution under PBGC Regulations section

section 1.415(c)-2.

4041.21(b)(2).

Underfunded defined benefit plan. Generally, an underfunded defined

Column (g). If the sum of the amounts in columns (g)(1), (g)(2), and (g)(3)

benefit plan is a defined benefit plan under which, at the time of plan

does not equal line 20(I) of Form 5310, attach an explanation of the

termination, the sum of the value of benefit liabilities for all participants

difference.

exceeds the value of plan assets available to pay those benefit liabilities.

For defined contribution plans. Enter in column (g)(1) the total assets

Benefit liabilities include participants’ accrued benefits, qualified

distributable to each participant attributable to mandatory and voluntary

preretirement survivor annuities, and any other plan benefits payable on

employee contributions and rollover contributions. Leave column (g)(2)

or after plan termination.

blank and enter in column (g)(3) the total assets distributable to each

Underfunded defined contribution plan. Generally, an underfunded

participant attributable to employer contributions including elective

defined contribution plan is a defined contribution plan in which the sum

deferrals to a qualified cash or deferred arrangement (section 401(k) plan)

of the account balances exceeds the plan’s assets available to provide

and employer matching contributions.

the benefits (for example, a money purchase plan terminates before a

For underfunded defined benefit plans. Enter in column (g)(1) amounts

funding waiver has been fully amortized).

allocated in accordance with section 4044(a)(1) and (2) of the Employee

Specific Instructions

Retirement Income Security Act of 1974. In column (g)(2), enter amounts

allocated in accordance with section 4044(a)(3) and (4)(A). In column

Prepare the participant census as of the date of plan termination or

(g)(3), enter all amounts allocated other than those entered in columns

proposed date of plan termination.

(g)(1) and (g)(2).

For underfunded defined benefit plans (except those benefiting only

Column (h). For defined benefit plans. Enter the present value of the

collectively bargained employees of which not more than 2% are

participant’s total benefit liabilities (determined as of the termination date, and

professional employees), provide the information in columns (a) through

whether or not forfeitable) at the date of distribution of the plan assets. Use

(h) for all participants. If there are more than 25 participants, attach

the date of plan termination for plans to be trusteed by the PBGC. For this

additional sheets providing the information in the same format as

purpose, present value is the single-sum distribution amount provided under

Form 6088.

the terms of the plan. However, if the plan does not provide for a single-sum

For defined benefit plans other than those subject to the preceding

distribution or the participant’s benefits are provided by an annuity contract,

paragraph, complete all columns on Form 6088 except (g)(1), (g)(2), and

present value is the cost (or estimated cost if actual cost is not available) of

(g)(3). If there are fewer than 25 participants, list all of the participants.

the annuity. Attach a statement explaining how the present values were

Otherwise, submit only the first 25 who fall under the priorities specified

determined (including the interest rate, lookback month, stability period, and

in the instructions for column (a).

mortality table used). This statement also should indicate the specific interest

For underfunded defined contribution plans, complete only columns

rates used to compute single-sum distributions. If the sum of the amounts in

(a), (b), (e), (g)(1), (g)(3), and (h). Provide this information for all

column (h) does not equal line 20(I) of Form 5310, attach an explanation of the

participants. If there are more than 25 participants, attach additional

difference.

sheets providing the information in the same format as the Form 6088.

Printed on recycled paper

Form 6088 - Distributable Benefits From Employee Pension Benefit Plans Page 2

Related Articles

Related forms

Related Categories